BILL NUMBER: AB 1105	CHAPTERED  07/06/99

	CHAPTER   67
	FILED WITH SECRETARY OF STATE   JULY 6, 1999
	APPROVED BY GOVERNOR   JULY 6, 1999
	PASSED THE ASSEMBLY   JUNE 16, 1999
	PASSED THE SENATE   JUNE 15, 1999
	AMENDED IN SENATE   JUNE 15, 1999

INTRODUCED BY   Assembly Members Jackson and Reyes and Senators Dunn
and Solis
   (Coauthor:  Senator Polanco)

                        FEBRUARY 25, 1999

   An act to amend Sections 138 and 4938 of, and to add Section 139
to, the Business and Professions Code, to add and repeal Title 11.5
(commencing with Section 1730) of Part 3 of the Code of Civil
Procedure, to add Section 4101.2 to the Food and Agricultural Code,
to amend Sections 8690.6 and 15301 of, to amend, repeal, and add
Section 68616 of, and to add Sections 11754.1 and 68617 to, the
Government Code, to amend Sections 44011, 44017.1, 44060, 44062.1,
44094, 50880, 50881, 50881.5, 50882, 50887, 50888.3, 50888.5,
50888.7, 50889.5, 50890, 50893.5, 50893.7, 50893.9, 51451, 51452, and
51455 of, to add Sections 44000.1 and 44091.2 to, to repeal Sections
50884 and 51453 of, and to repeal and add Section 50895 of, the
Health and Safety Code, to add Section 311.1 to the Public Utilities
Code, to repeal Section 19556 of the Revenue and Taxation Code, and
to amend Section 3 of Chapter 328 of the Statutes of 1998, relating
to state government, making an appropriation therefor, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1105, Jackson.   State government.
   (1) Existing law establishes the Department of Consumer Affairs to
regulate and license the various professional and vocational
occupations in the state.  Existing law requires every board under
the jurisdiction of the department to submit to the Director of
Consumer Affairs, by December 31, 1999, its method for ensuring that
every licensing examination administered by or pursuant to contract
with the board is subject to periodic evaluation.
   This bill instead would require that the submission be made by
December 1, 1999, and by December 1 of each subsequent year.  This
bill would also require the department to compile information
regarding these evaluations and submit it to the Legislature by
September 30 of each year.  It would make related changes in this
regard.
   This bill would also require the department to develop, in
consultation with the boards, programs, bureaus, and divisions under
its jurisdiction, and the Osteopathic Medical Board of California and
the State Board of Chiropractic Examiners, a policy regarding
examination development and validation, and occupational analysis.
It would require the department to finalize and distribute this
policy by September 30, 1999, to each of the boards, programs,
bureaus, and divisions under its jurisdiction and the Osteopathic
Medical Board of California and the State Board of Chiropractic
Examiners, and to submit this policy in draft form to the Legislature
for review at least 30 days prior to that date.
   (2) The Performance and Results Act of 1993, among other things,
requires the Department of Finance to develop a performance-based
budgeting pilot project.  Existing law also authorizes the Department
of Consumer Affairs to accept gifts and donations without approval
by the Director of Finance.  Those provisions are to remain in effect
only until the effective date of the Budget Act of 1999, or June 30,
1999, whichever occurs later.
   This bill would specify that this is also the intent of the State
Government Strategic Planning and Performance Review Act, would
delete the authorization for the Department of Consumer Affairs to
accept gifts and donations without approval of the Director of
Finance, and would extend the effective date of these provisions
until the effective date of the Budget Act of 2000, or June 30, 2000,
whichever occurs later.  The bill would also require the department
to end its participation in the performance-based budgeting pilot
project and to transition its budgeting and accounting systems during
the 1999-2000 fiscal year to conform with systems prescribed by the
Department of Finance, as specified.
   (3) Existing law sets forth the licensing requirements for
acupuncturists, including passage of a practical examination of the
required skills.
   This bill would revise that provision to require that in order to
be issued a license to practice acupuncture an applicant must pass a
written examination, as specified.
   (4) Under existing law, the parties to certain civil actions in
specified courts are required to submit to judicial arbitration, as
specified, prior to trial.
   This bill would impose a state-mandated local program by requiring
4 superior courts selected by the Judicial Council to participate,
as a pilot program, in early mediation of civil cases, as specified.
The bill would require the Judicial Council to report to the
Legislature and to the Governor regarding the pilot program, as
specified, on or before January 1, 2003.  The pilot program would be
repealed on January 1, 2004.
   (5) Existing law grants to the California Science Center specified
authority, including the authority to construct, operate, and lease
a stadium, arena, pavilion, or other building that is to be used for
the holding of athletic contests, exhibitions, and other public
meetings.
   This bill would authorize the California Science Center, with the
approval of the Director of General Services, to enter into a
long-term lease agreement with the Los Angeles Unified School
District to convert the state armory and surrounding land in or near
Exposition Park to a demonstration mathematics and science-based
school, as prescribed.
   (6) Existing law, operative until July 1, 1999, establishes in the
Reserve for Economic Uncertainties a Disaster Response-Emergency
Operations Account, which is continuously appropriated, to be used
for response activities and recovery activities, as defined.
Existing law limits authorizations under these provisions for
acquisitions, relocations, and environmental mitigations for needs
that are a direct consequence of the January 1997 floods or any
flood-related emergency that is declared by the Governor on or before
January 1, 1999.
   This bill would (a) extend the operative date of these provisions
to July 1, 2002, thus resulting in an appropriation by continuing a
continuously appropriated fund, (b) delete references to response
activities and recovery activities and instead refer to activities
that occur within 365 days after a declaration of emergency by the
Governor and activities that occur after the 365th day after a
declaration of emergency by the Governor, and (c) delete the
flood-related limitation applicable to the use of these funds for
acquisitions, relocations, and environmental mitigations.
   (7) Existing law provides that state armories in specified cities
and counties shall be made available to these counties or any city in
these counties for the purpose of providing temporary shelter for
homeless persons during specified periods of each year, as a
temporary measure until March 15, 1999, to allow adequate time for
government entities in these counties to develop other suitable
homeless shelter arrangements.
   This bill would delete the March 15, 1999 time restriction, thus
extending the program established under these provisions
indefinitely.
   (8) Existing law establishes in the State Treasury, the Stephen P.
Teale Data Center Revolving Fund (TDC Fund), a continuously
appropriated fund, for the payment of expenses incurred by the
Stephen P. Teale Data Center.  Existing law specifies the funds that
comprise the TDC Fund, including all moneys received into the State
Treasury from any source whatever in payment of electronic data
processing services or other services rendered by the data center.
   This bill would authorize the Stephen P. Teale Data Center to
establish rates and collect payments from state agencies for
providing services to those agencies.  The bill would require all
money received by the data center pursuant to this provision be
deposited in the Stephen P. Teale Data Center Revolving Fund and
would provide that the methodology for computing costs and billing
rates is subject to the approval of the Director of Finance.  The
bill would authorize the data center to require monthly payments in
advance by client agencies, based on estimated billings, but would
authorize a state agency to make payments pursuant to an alternative
schedule agreed to by the applicable state agency and the data
center.
   (9) Existing law sets forth various deadlines for procedures in
civil actions subject to trial court delay reduction rules, as
specified.
   This bill would make an exception to those deadlines for complex
cases, to remain in effect only until January 1, 2004.
   (10) Existing law sets forth the duties of the Judicial Council,
as specified.
   This bill would require the Judicial Council, on or before October
30, 2002, to submit a report to the Legislature and the Governor
regarding the effectiveness of the Centers for Complex Litigation
established pursuant to the Budget Act of 1999, as specified.
   (11) Existing law establishes a motor vehicle (smog check)
inspection and maintenance program, administered by the Department of
Consumer Affairs, which requires inspection of motor vehicles
biennially upon registration, and at other times as specified.
Existing law exempts from the biennial inspection, any motor vehicle
4 or less model-years old.
   This bill would authorize the department to expand that exemption
to include any motor vehicle that is up to 6 or less model-years old.

   (12) Under existing law, motor vehicles of 4 or less model-years
old that are exempt from the biennial smog check inspection are
subject to an annual smog abatement fee of $4.
   This bill would provide that if the Department of Consumer Affairs
exempts from the biennial inspection, motor vehicles that are 5 or 6
model-years old, the department may also subject those exempted
vehicles to the $4 annual smog abatement fee.  The bill would
authorize the department to also subject specified other vehicles
exempted from the biennial smog check requirement, to the $4 annual
smog abatement fee.
   (13) Existing law requires the Department of Consumer Affairs to
offer a low-income repair assistance program to eligible individuals
based on a maximum level of 175% of the federal poverty level, as
provided.  Existing law provides for the program to offer repair cost
assistance to those eligible individuals upon payment of a specified
copayment.
   This bill would raise the low-income threshold level to 185% of
the federal poverty level.  The bill would also expand the repair
assistance program to offer assistance to an owner of a motor vehicle
that is directed to a test-only facility and fails the smog check
inspection.  The bill would require the department to impose a
copayment on those individuals that is at least equivalent to the
copayment imposed on low-income individuals under the program.  The
bill would authorize the department to increase its contribution
toward the repair of a motor vehicle under the program, if the
department determines that the expenditure is cost-effective.
   (14) Existing law establishes the High Polluter Repair or Removal
Account in the Vehicle Inspection and Repair Fund and provides that
money in the account shall be available for, among other purposes,
voluntary accelerated retirement of high-polluters.
   This bill would authorize the Department of Consumer Affairs to
specify the amount of money that shall be paid to an owner of a
high-polluting motor vehicle who voluntarily retires the vehicle.
   (15) The bill would declare the intent of the Legislature that, if
the $300 smog impact fee imposed on motor vehicles previously
registered in another state is ruled unconstitutional or
unenforceable by an appellate court or the California Supreme Court,
the repair assistance program described in (13) above and any
voluntary vehicle retirement program implemented by the Department of
Consumer Affairs not be supported through the General Fund.
   (16) Under existing law, the Department of Housing and Community
Development administers the Family Housing Demonstration Program,
under which it may make loans from the continuously appropriated
Family Housing Demonstration Account to sponsors for purposes of
assisting the development of community housing and congregate housing
developments.  Existing law contains findings and declarations of
the Legislature relating to the need for this program.  Under this
existing program, "congregate housing" is defined as a new or
rehabilitated large multibedroom structure in which 2 to 10
households share specified household responsibilities.
   This bill would change the name of the program to the Families
Moving to Work Program and would substitute revised findings and
declarations of the Legislature relating to the program and revise
the definition of congregate housing to delete the restriction with
respect to the maximum number of households that may share common
facilities and responsibilities.
   (17) Under the existing Family Housing Demonstration Program, the
Department of Housing and Community Development is required to
implement the program after adopting specified rules and regulations.

   This bill would repeal this requirement.
   (18) Under the existing Family Housing Demonstration Program, the
housing component of a community housing development is required to
include specified features and criteria, among which is that between
20% and 30% of the assisted units in the development must be occupied
by elderly persons or households with the balance required to be
available to families with children.  The jobs and economic
development component of a community housing development is required
to include specified features and criteria, among which is that the
sponsor is required to propose and implement a job placement and
training program for residents to be implemented within 18 months of
initial occupancy.
   This bill would delete the percentage of assisted units that must
be available to elderly persons in a community housing development.
The bill also would require the sponsor of the community housing
development to develop a job placement and training program for
residents to be implemented upon initial occupancy.  The bill would
make other revisions to the jobs and economic development component.

   (19) Under existing law, the Department of Housing and Community
Development is required to base an award of funds from the Family
Housing Demonstration Account on a ranking of applications occurring
at least once every 3 months until there are insufficient funds
available to commit according to that ranking and prescribes
characteristics of projects that are required to be given priority.
   This bill would delete the requirement that the ranking occur once
every 3 months and would add to those projects to be given priority,
projects that are reasonable in cost.
   (20) Under existing law, the Department of Housing and Community
Development is required to monitor the construction and operation of
the community housing developments developed pursuant to the Family
Housing Demonstration Program in order to ensure compliance with loan
conditions, contract obligations, and the program and any
regulations adopted pursuant to it.
   This bill would authorize the department to enter into a contract
with a local public agency to monitor the operation of community
housing developments and congregate housing developments.
   (21) Under the existing Family Housing Demonstration Program,
regulatory agreements with respect to community housing developments
are required to contain specified binding provisions.
   This bill would clarify that certain of these provisions are
applicable to congregate housing developments as well, and would add
a requirement that the agreement contain provisions that would
encourage an eligible household to occupy a unit that is constructed
with funds under the program for no more than 5 years.
   (22) Under existing law, the Department of Housing and Community
Development was authorized until June 30, 1992, to adopt, amend, or
repeal emergency regulations to implement the Family Housing
Demonstration Program with respect to loans made with housing bond
revenues.
   This bill would repeal these provisions and instead exempt any
rule, policy, or standard of general application developed by the
department in implementing the program from specified provisions of
the Administrative Procedure Act.
   (23) Under existing law, the Department of Housing and Community
Development is required to make awards from the Family Housing
Demonstration Account in the Rental Housing Construction Fund for
purposes of assisting the development of community housing
developments.
   This bill would delete that requirement and instead authorize the
department to make those awards from that account, which the bill
would rename the Families Moving to Work Account.  The bill would
delete a specified formula for the apportionment of money available
for loans in the account between congregate housing and community
housing developments.
   (24) Existing law, until January 1, 2002, establishes a Homebuyer
Down Payment Assistance Program and a Rental Assistance Program to
provide assistance in the amount of the applicable school facility
fee on affordable housing developments.  Existing law appropriates
$160,000,000 to the School Facilities Fee Assistance Fund which is
continuously appropriated to the Department of General Services for
the purposes of these programs, allocates 25% of that amount for
those programs in each of 4 fiscal years commencing with 1998-99, and
requires the department to contract with the California Housing
Finance Agency for the administration of these programs and for
allocation of these funds.
   This bill instead would allocate a specified portion of
$160,000,000 for those purposes in each fiscal year from 1998-99 to
2002-03, and would repeal the authority for those programs on January
1, 2003.  The bill would require repayments, interest, and other
moneys accruing to the fund to be returned to the fund and to be
available for allocation by the California Housing Finance Agency to
those housing assistance programs.  The bill would also revise the
criteria for granting assistance pursuant to those programs, as
specified.
   (25) Existing law prescribes the powers and duties of the Public
Utilities Commission.
   This bill would prohibit the commission from considering or
requiring, in determining qualified bidders, or in awarding
contracts, that any facilities be located within a particular area of
the state, or within geographical proximity of any particular area
of the state.
   (26) Existing law providing for the administration of franchise
and income tax laws requires each city that maintains, or has access
to, a computerized system, as described, to annually furnish to the
Franchise Tax Board specified information for businesses subject to
tax in the preceding fiscal year.
   This bill would repeal that requirement.
   (27) The existing Performance and Results Act of 1993 requires the
Department of Finance to develop a performance budgeting pilot
project, in accordance with specified principles, involving 4 state
departments, including the Department of General Services and the
Department of Consumer Affairs.  Existing law sets forth the
conditions pursuant to which the Department of General Services,
notwithstanding existing statutes and regulations, is required or
authorized, among other things, to carry out specified functions
relating to state personnel matters, to prepay vendors when it is
cost-beneficial to the department, to accept gifts and donations of
real property without approval by the Director of Finance, and to
procure goods from the private sector even though the goods may be
available through the Prison Industry Authority.  These provisions of
existing law remain in effect until the effective date of the Budget
Act of 1999 or June 30, 1999, whichever occurs later.
   This bill would reenact the provisions relating to the Department
of General Services.  This bill would specify that these provisions
shall remain in effect only until the effective date of the Budget
Act of 2000 or July 1, 2000, whichever occurs later.
   (28) Existing law establishes the State Energy Resources
Conservation and Development Commission in the Resources Agency, and
specifies the powers and duties of the commission.
   This bill would require the commission to conduct a public process
to prepare a transition plan report and an operational plan report
concerning the transfer of energy efficiency programs from the Public
Utilities Commission to the State Energy Resources Conservation and
Development Commission, and to submit these reports to the
Legislature by January 1, 2000.
  (29) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   (30) The bill would declare that it is to take effect immediately
as an urgency statute.  However, certain provisions of the bill,
referred to in (16) to (23) above, would become operative only if an
appropriation is made for purposes of these provisions in the Budget
Act of 1999 or in another statute enacted during the 1st calendar
year of the 1999-2000 Regular Session and the bill would provide that
these provisions shall be funded exclusively with funds appropriated
thereby.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 138 of the Business and Professions Code is
amended to read:
   138.  Every board in the department, as defined in Section 22,
shall initiate the process of adopting regulations on or before June
30, 1999, to require its licentiates, as defined in Section 23.8, to
provide notice to their clients or customers that the practitioner is
licensed by this state.  A board shall be exempt from the
requirement to adopt regulations pursuant to this section if the
board has in place, in statute or regulation, a requirement that
provides for consumer notice of a practitioner's status as a licensee
of this state.
  SEC. 2.  Section 139 is added to the Business and Professions Code,
to read:
   139.  (a) The Legislature finds and declares that occupational
analyses and examination validation studies are fundamental
components of licensure programs.  It is the intent of the
Legislature that the policy developed by the department pursuant to
subdivision (b) be used by the fiscal, policy, and sunset review
committees of the Legislature in their annual reviews of these
boards, programs, and bureaus.
   (b) Notwithstanding any other provision of law, the department
shall develop, in consultation with the boards, programs, bureaus,
and divisions under its jurisdiction, and the Osteopathic Medical
Board of California and the State Board of Chiropractic Examiners, a
policy regarding examination development and validation, and
occupational analysis.  The department shall finalize and distribute
this policy by September 30, 1999, to each of the boards, programs,
bureaus, and divisions under its jurisdiction and to the Osteopathic
Medical Board of California and the State Board of Chiropractic
Examiners.  This policy shall be submitted in draft form at least 30
days prior to that date to the appropriate fiscal, policy, and sunset
review committees of the Legislature for review.  This policy shall
address, but shall not be limited to, the following issues:
   (1) An appropriate schedule for examination validation and
occupational analyses, and circumstances under which more frequent
reviews are appropriate.
   (2) Minimum requirements for psychometrically sound examination
validation, examination development, and occupational analyses,
including standards for sufficient number of test items.
   (3) Standards for review of state and national examinations.
   (4) Setting of passing standards.
   (5) Appropriate funding sources for examination validations and
occupational analyses.
   (6) Conditions under which boards, programs, and bureaus should
use internal and external entities to conduct these reviews.
   (7) Standards for determining appropriate costs of reviews of
different types of examinations, measured in terms of hours required.

   (8) Conditions under which it is appropriate to fund permanent and
limited term positions within a board, program, or bureau to manage
these reviews.
   (c) Every regulatory board and bureau, as defined in Section 22,
and every program and bureau administered by the department, the
Osteopathic Medical Board of California, and the State Board of
Chiropractic Examiners, shall submit to the director on or before
December 1, 1999, and on or before December 1 of each subsequent
year, its method for ensuring that every licensing examination
administered by or pursuant to contract with the board is subject to
periodic evaluation.  The evaluation shall include (1) a description
of the occupational analysis serving as the basis for the
examination; (2) sufficient item analysis data to permit a
psychometric evaluation of the items; (3) an assessment of the
appropriateness of prerequisites for admittance to the examination;
and (4) an estimate of the costs and personnel required to perform
these functions.  The evaluation shall be revised and a new
evaluation submitted to the director whenever, in the judgment of the
board, program, or bureau, there is a substantial change in the
examination or the prerequisites for admittance to the examination.
   (d) The evaluation may be conducted by the board, program, or
bureau, the Office of Examination Resources of the department, the
Osteopathic Medical Board of California, or the State Board of
Chiropractic Examiners or pursuant to a contract with a qualified
private testing firm.  A board, program, or bureau that provides for
development or administration of a licensing examination pursuant to
contract with a public or private entity may rely on an occupational
analysis or item analysis conducted by that entity.  The department
shall compile this information, along with a schedule specifying when
examination validations and occupational analyses shall be
performed, and submit it to the appropriate fiscal, policy, and
sunset review committees of the Legislature by September 30 of each
year.  It is the intent of the Legislature that the method specified
in this report be consistent with the policy developed by the
department pursuant to subdivision (b).
  SEC. 3.  Section 4938 of the Business and Professions Code is
amended to read:
   4938.  The committee shall issue a license to practice acupuncture
to any person who makes an application and meets the following
requirements:
   (a) Is at least 18 years of age.
   (b) Furnishes satisfactory evidence of completion of one of the
following:
   (1) An educational and training program approved by the committee
pursuant to Section 4939.
   (2) Satisfactory completion of a tutorial program in the practice
of an acupuncturist which is approved by the committee.
   (3) In the case of an applicant who has completed education and
training outside the United States and Canada, documented educational
training and clinical experience which meets the standards
established pursuant to Sections 4939 and 4941.
   (c) Passes a written examination administered by the committee
which tests the applicant's ability, competency, and knowledge in the
practice of an acupuncturist.  The written examination shall be
developed by the Office of Examination Resources of the Department of
Consumer Affairs.
   (d) Is not subject to denial pursuant to Division 1.5 (commencing
with Section 475).
   (e) Completes a clinical internship training program approved by
the committee.  The clinical internship training program shall not
exceed nine months in duration and shall be located in a clinic in
this state, which is approved by the committee pursuant to Section
4939.  The length of the clinical internship shall depend upon the
grades received in the examination and the clinical training already
satisfactorily completed by the individual prior to taking the
examination.  On and after January 1, 1987, individuals with 800 or
more hours of documented clinical training shall be deemed to have
met this requirement.  The purpose of the clinical internship
training program shall be to assure a minimum level of clinical
competence.
   Each applicant who qualifies for a license shall pay, as a
condition precedent to its issuance and in addition to other fees
required, the initial licensure fee.
  SEC. 4.  Title 11.5 (commencing with Section 1730) is added to Part
3 of the Code of Civil Procedure, to read:

      TITLE 11.5.  COURT-RELATED ALTERNATIVE DISPUTE RESOLUTION
PROCESSES

   1730.  (a) The Judicial Council shall establish pilot programs in
four superior courts to assess the benefits of early mediation of
civil cases. In two of these pilot program courts, the court shall
have the authority to make mandatory referrals to mediation, pursuant
to this title.
   (b) The Judicial Council shall select the courts to participate in
the pilot program.
   1731.  As used in this title:
   (a) "Alternative dispute resolution process" or "ADR process"
means a process in which parties meet with a third party neutral to
assist them in resolving their dispute outside of formal litigation.

   (b) "General civil case" means all civil cases except probate,
guardianship, conservatorship, family law (including proceedings
under the Family Law Act, Uniform Parentage Act, and Uniform Child
Custody Jurisdiction Act; freedom from parental custody and control
proceedings; and adoption proceedings), juvenile court proceedings,
small claims appeals, and other civil petitions, as defined in the
Regulations on Superior Court Reports to the Judicial Council on the
effective date of this section, including petitions for a writ of
mandate or prohibition, temporary restraining orders, harassment
restraining orders, domestic violence restraining orders, writs of
possession, appointment of a receiver, release of property from lien,
and change of name.
   (c) "Mediation" means a process in which a neutral person or
persons facilitate communication between disputants to assist them in
reaching a mutually acceptable agreement.
   1732.  (a) Except as otherwise provided by rule pursuant to
subdivision (b), this title shall apply to all general civil cases
filed in the pilot courts after January 1, 2000.
   (b) The Judicial Council may, by rule, exempt specified categories
of general civil cases from the provisions of this title.
   1733.  Any party who has been ordered to mediation pursuant to
this title, or who has participated in a voluntary mediation with all
of the other parties, is exempt from being compelled to participate
in any other judicially ordered arbitration or mediation.
   1734.  (a) Notwithstanding Section 68616 of the Government Code or
any other provision of law, in cases subject to this title, the
court may hold a status conference not earlier than 90 days and not
later than 150 days after the filing of the complaint.  However, at
or before the conference, any party may request that the status
conference be continued on the grounds that the party has been unable
to serve an essential party to the proceeding.
   (b) At this status conference, the court shall confer with the
parties about alternative dispute resolution processes and, in the
two pilot program courts authorized to make mandatory referrals to
mediation, the court may refer the parties to mediation in accordance
with this title, if the court, in its discretion, determines there
is good cause for ordering mediation.  Before making a referral, the
court shall consider the willingness of the parties to mediate.
   1735.  (a) Each pilot program court authorized to make mandatory
referrals to mediation pursuant to this title shall establish a panel
of mediators.
   (b) In cases referred to mediation pursuant to this title, the
parties shall select the mediator.  The mediator selected by the
parties need not be from the court's panel of mediators.  However, if
the mediator is not from the court's panel, the court may approve
compensation for the fees for that mediator's services from court
funds pursuant to subdivision (c).  Otherwise, the parties shall be
responsible for paying any fees for the mediator's services, and each
party to the proceeding shall share equally in the fee of the
mediator, except where the parties agree otherwise.  If the mediator
is from the court's panel of mediators then the parties shall not be
required to pay a fee for the mediator's services.  If the parties do
not select a mediator within the time period specified in the rules
adopted by the Judicial Council, a mediator shall be selected by the
court from the court's panel of mediators.  If a mediator from the
court's panel is not available to mediate a case referred pursuant to
this subdivision in a timely manner, this title shall not apply.
   (c) The Judicial Council shall adopt rules to implement this
section, including rules establishing requirements for the panels of
mediators, the procedures to be followed in selecting a mediator, and
the compensation of mediators who conduct mediations pursuant to
this title.
   1736.  The mediator shall schedule the early mediation within 60
days following the early status conference, unless any party requests
a later date that is within 150 days following the early status
conference or the court finds, for good cause, that a later date is
necessary, or where counsel, a party, or the mediator is unavailable
during that time period, or the court finds that discovery reasonably
necessary for a meaningful mediation cannot be conducted prior to
the end of that period.
   1737.  Trial counsel, parties, and persons with full authority to
settle the case, shall personally attend the mediation, unless
excused by the court for good cause.  If any consent to settle is
required for any reason, the party with the consent authority shall
be personally present to the mediation.  If no trial counsel, party,
or person with full authority to settle a case is personally present
at the mediation, unless excused for good cause, the party who is in
compliance with this section may immediately terminate the mediation.

   1738.  (a) All statements made by the parties during a mediation
under this title shall be subject to Sections 703.5 and 1152, and
Chapter 2 (commencing with Section 1115) of Division 9 of, the
Evidence Code.
   (b) Any reference to a mediation during any subsequent trial shall
constitute an irregularity in the proceedings of the trial for the
purposes of Section 657.
   1739.  (a) In the event that the parties to mediation are unable
to reach a mutually acceptable agreement and any party to the
mediation wishes to terminate the mediation at any time, then the
mediator shall file a statement of nonagreement.  This statement
shall be in a form to be developed by the Judicial Council.
   (b) Upon the filing of a statement of nonagreement, the matter
shall be calendared for trial, by court or jury, both as to law and
fact, insofar as possible, so that the trial shall be given the same
place on the active list as it had prior to mediation, or shall
receive civil priority on the next setting calendar.
   1740.  (a) Submission of an action to mediation pursuant to this
title shall not suspend the running of the time periods specified in
Chapter 1.5 (commencing with Section 583.110) of Title 8 of Part 2,
except as provided in this section.
   (b) If an action is or remains submitted to mediation pursuant to
this title more than four years and six months after the plaintiff
has filed the action, then the time beginning on the date four years
and six months after the plaintiff has filed the action and ending on
the date on which a statement of nonagreement is filed pursuant to
this section shall not be included in computing the five-year period
specified in Section 583.310.
   1741.  Any party who participates in mediation pursuant to this
title shall retain the right to obtain discovery to the extent
available under the Civil Discovery Act of 1986 (Article 3
(commencing with Section 2016) of Chapter 3 of Title 3 of Part 4).
   1742.  On or before January 1, 2003, the Judicial Council shall
submit a report to the Legislature and to the Governor concerning the
pilot programs conducted pursuant to this title.  The report shall
examine, among other things, the settlement rate, the timing of
settlement, the litigants' satisfaction with the dispute resolution
process and the costs to the litigants and the courts.  The Judicial
Council shall, by rule, require that each pilot program court provide
the Judicial Council with the data that will enable the Judicial
Council to submit the report required by this section.
   1743.  This title shall remain in effect only until January 1,
2004, an as of that date is repealed, unless a later enacted statute
deletes or extends that date.
  SEC. 5.  Section 4101.2 is added to the Food and Agricultural Code,
to read:
   4101.2.  (a) Notwithstanding any other provision of law, the
California Science Center, with the approval of the Director of
General Services, may enter into a long-term lease agreement, not to
exceed 40 years, with terms and conditions determined by the director
to be in the best interest of the state, with the Los Angeles
Unified School District to convert the Armory and surrounding land in
or near Exposition Park to a demonstration mathematics and
science-based school.
   (b) For the purposes of carrying out subdivision (a), all of the
following requirements apply:
   (1) Plans shall be developed by the Los Angeles Unified School
District for the conversion described in subdivision (a).
   (2) The Los Angeles Unified School District shall demonstrate to
the Director of General Services that it has sufficient funds, from
sources other than the California Science Center, to complete the
conversion.
   (3) The Los Angeles Unified School District shall give attention
to the historical preservation of the Armory in developing plans and
completing the conversion.
   (4) All lease documents necessary to complete the conversion shall
be approved by the Director of General Services prior to their
execution.
  SEC. 6.  Section 8690.6 of the Government Code is amended to read:

   8690.6.  (a) There is hereby established in the Special Fund for
Economic Uncertainties a Disaster Response-Emergency Operations
Account.  Notwithstanding Section 13340, moneys in the account are
continuously appropriated, subject to the limitations specified in
subdivisions (c) and (d), without regard to fiscal years, for
allocation by the Director of Finance to state agencies for disaster
response operation costs incurred by state agencies as a result of a
state of emergency proclamation by the Governor.  These allocations
may be for activities that occur within 365 days after a declaration
of emergency by the Governor, as authorized pursuant to subdivision
(c), or for activities that occur after the 365th day after a
declaration of emergency by the Governor, as authorized pursuant to
subdivision (d).
   (b) It is the intent of the Legislature that the Disaster
Response-Emergency Operations Account have an unencumbered balance of
one million dollars ($1,000,000) at the beginning of each fiscal
year.  In the event that this account requires additional moneys to
meet claims against the account, the Director of Finance may transfer
moneys from the Special Fund for Economic Uncertainties to the
account in that amount sufficient to pay the amount of the claims
that exceed the unencumbered balance in the account.
   (c) For activities that occur within 365 days after a declaration
of emergency by the Governor, the funds shall be allocated subject to
the conditions of this section and in accordance with Section 27.00
of the annual Budget Act, except that the allocations may be made 30
days or less after notification of the Legislature pursuant to
subdivision (b) of that section.
   (d) For activities that occur after the 365th day after a
declaration of emergency by the Governor, the funds shall be
allocated subject to the conditions of this section and in accordance
with Section 27.00 of the annual Budget Act.
   (e) Notwithstanding subdivision (a) of Section 27.00 of the annual
Budget Act, authorizations for acquisitions, relocations, and
environmental mitigations related to activities, as described in
subdivision (c) or (d), shall be authorized pursuant to this section.
  However, these funds may only be authorized for needs that are a
direct consequence of the declared emergency where failure to
undertake the project may interrupt essential state services or
jeopardize public health or safety.  In addition, any acquisition
accomplished under this subdivision shall comply with any otherwise
applicable law, except as provided in the first sentence of this
subdivision.
   (f) No funds allocated under this section shall be used to
supplant federal funds otherwise available in the absence of state
financial relief.
   (g) The amount of financial assistance provided to an individual,
business, or governmental entity under this section, or pursuant to
any other program of state-funded disaster assistance, shall be
deducted from sums received in payment of damage claims asserted
against the state, its agents, or employees, for causing or
contributing to the effects of the proclaimed disaster.
   (h) No public entity administering disaster assistance to
individuals shall receive funds under this section unless it
administers that assistance pursuant to the following criteria:
   (1) All applications, forms, and other written materials presented
to persons seeking assistance shall be available in English and in
the same language as that used by the major non-English-speaking
group within the disaster area.
   (2) Bilingual staff who reflect the demographics of the disaster
area shall be available to applicants.
   (i) This section shall become inoperative on July 1, 2002, and, as
of January 1, 2003, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2003, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 7.  Section 15301 of the Government Code is amended to read:
   15301.  (a) The El Centro armory in Imperial County; the Culver
City, Glendale, Inglewood, Long Beach on 7th Street, Pomona, and
Sylmar armories, and the West Los Angeles armory on Federal Avenue,
in Los Angeles County; the Merced armory in Merced County; the
Fullerton and Santa Ana armories in Orange County; the Indio and
Riverside armories in Riverside County; the Escondido and Vista
armories in San Diego County; the San Mateo armory in San Mateo
County; the Santa Barbara and Santa Maria armories in Santa Barbara
County; the Gilroy and Sunnyvale armories, and the San Jose armory on
Hedding Street, in Santa Clara County; the Santa Cruz and
Watsonville armories in Santa Cruz County; the Redding armory in
Shasta County; the Petaluma and Santa Rosa armories in Sonoma County;
and the Oxnard armory in Ventura County, shall be made available to
these counties or any city in these counties for the purpose of
providing temporary shelter for homeless persons during the period
from December 1 through March 15 each year, as a temporary measure to
allow adequate time for government entities in these counties to
develop other suitable homeless shelter arrangements.  If severe
weather conditions exist between November 1 through March 31, the
Military Department may extend the use of the armories to include
November 1 to December 1 and March 15 to March 31.
   (b) If the communities in Calexico, Chico, Corona, El Cajon,
Roseville, or San Rafael require the use of the armories in those
communities as emergency shelters, the county or city may request use
of the armories through the Office of Emergency Services, if the
county or city has exhausted all other available resources for
housing homeless persons.
  SEC. 8.  Section 11754.1 is added to the Government Code, to read:

   11754.1.  (a) The Stephen P. Teale Data Center may establish rates
and collect payments from state agencies for providing services to
those agencies.  The methodology for computing costs and billing
rates shall be subject to the approval of the Director of Finance.
   (b) All money received by the Stephen P. Teale Data Center
pursuant to this section shall be deposited in the Stephen P. Teale
Data Center Revolving Fund.  In order to assure that there is
adequate cash in the fund, the Stephen P. Teale Data Center may
require monthly payments in advance by client agencies, based on
estimated billings.  By mutual agreement between the Stephen P. Teale
Data Center and the applicable state agency, a state agency may make
monthly, quarterly, or annual payments in advance or arrears.
   (c) Consistent with subdivision (b), and pursuant to Section
11255, the Controller shall transfer any amounts so authorized by the
Stephen P. Teale Data Center.  The Stephen P. Teale Data Center
shall notify each affected state agency upon requesting the
Controller to make the transfer.
  SEC. 9.  Section 68616 of the Government Code is amended to read:
   68616.  Delay reduction rules shall not require shorter time
periods than as follows:
   (a) Service of the complaint within 60 days after filing.
Exceptions, for longer periods of time, (1) may be granted as
authorized by local rule and (2) shall be granted on a showing that
service could not reasonably be achieved within the time required
with the exercise of due diligence consistent with the amount in
controversy.
   (b) Service of responsive pleadings within 30 days after service
of the complaint.  The parties may stipulate to an additional 15
days.  Exceptions, for longer periods of time, may be granted as
authorized by local rule.
   (c) Time for service of notice or other paper under Sections 1005
and 1013 of the Code of Civil Procedure and time to plead after
service of summons under Section 412.20 of the Code of Civil
Procedure shall not be shortened except as provided in those
sections.
   (d) Within 30 days of service of the responsive pleadings, the
parties may, by stipulation filed with the court, agree to a single
continuance not to exceed 30 days.
   It is the intent of the Legislature that these stipulations not
detract from the efforts of the courts to comply with standards of
timely disposition.  To this extent, the Judicial Council shall
develop statistics that distinguish between cases involving, and not
involving, these stipulations.
   (e) Except in complex cases, no status conference, or similar
event, other than a challenge to the jurisdiction of the court, may
be required to be conducted sooner than 30 days after service of the
first responsive pleadings, or no sooner than 30 days after
expiration of a stipulated continuance, if any, pursuant to
subdivision (d).  For purposes of this subdivision, a "complex case"
shall be as defined in the California Rules of Court.
   (f) Article 3 (commencing with Section 2016) of Chapter 3 of Title
3 of Part 4 of the Code of Civil Procedure shall govern discovery,
except in arbitration proceedings.
   (g) No case may be referred to arbitration prior to 210 days after
the filing of the complaint, exclusive of the stipulated period
provided for in subdivision (d).  No rule adopted pursuant to this
article may contravene Sections 638 and 639 of the Code of Civil
Procedure.
   (h) Unnamed (DOE) defendants shall not be dismissed prior to the
conclusion of the introduction of evidence at trial, except upon
stipulation or motion of the parties.
   (i) Notwithstanding Section 170.6 of the Code of Civil Procedure,
in direct calendar courts, challenges pursuant to that section shall
be exercised within 15 days of the party's first appearance.  Master
calendar courts shall be governed solely by Section 170.6 of the Code
of Civil Procedure.
   (j) This section applies to all cases subject to this article
which are filed on or after January 1, 1991.

         (k) This section shall remain in effect only until January
1, 2004, and as of that date is repealed, unless a later enacted
statute deletes or extends that date.
  SEC. 10.  Section 68616 is added to the Government Code, to read:
   68616.  Delay reduction rules shall not require shorter time
periods than as follows:
   (a) Service of the complaint within 60 days after filing.
Exceptions, for longer periods of time, (1) may be granted as
authorized by local rule and (2) shall be granted on a showing that
service could not reasonably be achieved within the time required
with the exercise of due diligence consistent with the amount in
controversy.
   (b) Service of responsive pleadings within 30 days after service
of the complaint.  The parties may stipulate to an additional 15
days.  Exceptions, for longer periods of time, may be granted as
authorized by local rule.
   (c) Time for service of notice or other paper under Sections 1005
and 1013 of the Code of Civil Procedure and time to plead after
service of summons under Section 412.20 of the Code of Civil
Procedure shall not be shortened except as provided in those
sections.
   (d) Within 30 days of service of the responsive pleadings, the
parties may, by stipulation filed with the court, agree to a single
continuance not to exceed 30 days.
   It is the intent of the Legislature that these stipulations not
detract from the efforts of the courts to comply with standards of
timely disposition.  To this extent, the Judicial Council shall
develop statistics that distinguish between cases involving, and not
involving, these stipulations.
   (e) No status conference, or similar event, other than a challenge
to the jurisdiction of the court, may be required to be conducted
sooner than 30 days after service of the first responsive pleadings,
or no sooner than 30 days after expiration of a stipulated
continuance, if any, pursuant to subdivision (d).
   (f) Article 3 (commencing with Section 2016) of Chapter 3 of Title
3 of Part 4 of the Code of Civil Procedure shall govern discovery,
except in arbitration proceedings.
   (g) No case may be referred to arbitration prior to 210 days after
the filing of the complaint, exclusive of the stipulated period
provided for in subdivision (d).  No rule adopted pursuant to this
article may contravene Sections 638 and 639 of the Code of Civil
Procedure.
   (h) Unnamed (DOE) defendants shall not be dismissed prior to the
conclusion of the introduction of evidence at trial, except upon
stipulation or motion of the parties.
   (i) Notwithstanding Section 170.6 of the Code of Civil Procedure,
in direct calendar courts, challenges pursuant to that section shall
be exercised within 15 days of the party's first appearance.  Master
calendar courts shall be governed solely by Section 170.6 of the Code
of Civil Procedure.
   (j) This section applies to all cases subject to this article
which are filed on or after January 1, 1991.
   (k) This section shall become operative on January 1, 2004.
  SEC. 11.  Section 68617 is added to the Government Code, to read:
   68617.  On or before October 30, 2002, the Judicial Council shall
submit a report to the Legislature and the Governor regarding the
effectiveness of the Centers for Complex Litigation established
pursuant to the Budget Act of 1999.  The report shall examine, among
other things, the number of complex cases filed, the impact of the
centers on case and calendar management, and the impact on the trial
courts, the attorneys, and the parties, and shall make
recommendations to the Legislature and the Governor.
  SEC. 12.  Section 44000.1 is added to the Health and Safety Code,
to read:
   44000.1.  It is the intent of the Legislature that the amendments
made to this part by the act that added this section during the
1999-2000 Regular Session not negatively affect the ability of the
state to achieve its emission reduction goals.
  SEC. 13.  Section 44011 of the Health and Safety Code is amended to
read:
   44011.  (a) All motor vehicles powered by internal combustion
engines that are registered within an area designated for program
coverage shall be required biennially to obtain a certificate of
compliance or noncompliance, except for all of the following:
   (1) Every motorcycle, and every diesel-powered vehicle, until the
department, pursuant to Section 44012, implements test procedures
applicable to motorcycles or to diesel-powered vehicles, or both.
   (2) Any motor vehicle that has been issued a certificate of
compliance or noncompliance or a repair cost waiver upon a change of
ownership or initial registration in this state during the preceding
six months.
   (3) (A) Prior to January 1, 2003, any motor vehicle manufactured
prior to the 1974 model-year.
   (B) Beginning January 1, 2003, any motor vehicle that is 30 or
more model-years old.
   (4) (A) Any motor vehicle four or less model-years old.
   (B) The department, by regulation, may increase the exemption
provided by this paragraph to include any motor vehicle up to six or
less model-years old.
   (C) Any motor vehicle excepted by this paragraph shall be subject
to testing and to certification requirements as determined by the
department, if any of the following apply:
   (i) The department determines through remote sensing activities or
other means that there is a substantial probability that the vehicle
has a tampered emission control system or would fail for other cause
a smog check test as specified in Section 44012.
   (ii) The vehicle was previously registered outside this state and
is undergoing initial registration in this state.
   (iii) The vehicle is being registered as a specially constructed
vehicle.
   (iv) The vehicle has been selected for testing pursuant to Section
44014.7 or any other provision of this chapter authorizing
out-of-cycle testing.
   (5) In addition to the vehicles exempted pursuant to paragraph
(4), any motor vehicle or class of motor vehicles exempted pursuant
to subdivision (b) of Section 44024.5.  It is the intent of the
Legislature that the department, pursuant to the authority granted by
this paragraph, exempt at least 15 percent of the lowest emitting
motor vehicles from the biennial smog check inspection.
   (6) Any motor vehicle that the department determines would present
prohibitive inspection or repair problems.
   (7) Any vehicle registered to the owner of a fleet licensed
pursuant to Section 44020 if the vehicle is garaged exclusively
outside the area included in program coverage, and is not primarily
operated inside the area included in program coverage.
   (b) Vehicles designated for program coverage in enhanced areas
shall be required to obtain inspections from appropriate smog check
stations operating in enhanced areas.
  SEC. 14.  Section 44017.1 of the Health and Safety Code is amended
to read:
   44017.1.  (a) For purposes of this section, "low-income motor
vehicle owner" means a person whose income does not exceed 185
percent of the federal poverty level.
   (b) Notwithstanding subdivision (a) of Section 44017, for
low-income motor vehicle owners qualified under Section 44062.1, the
repair cost limit, including parts and labor, shall be two hundred
fifty dollars ($250) in all areas where the program operates.
However, the department may decrease that amount, to not more than
two hundred dollars ($200), if the department determines that
participation rates are unsatisfactory.
   (c) Until such time as a repair assistance program becomes
effective pursuant to Section 44062.1, an economic hardship extension
shall be issued upon request to a qualified low-income motor vehicle
owner whose motor vehicle has been tested but does not meet
applicable emissions standards and the necessary repairs exceed the
repair cost limit specified in subdivision (b).
  SEC. 15.  Section 44060 of the Health and Safety Code is amended to
read:
   44060.  (a) The department shall prescribe the form of the
certificate of compliance or noncompliance, repair cost waivers, and
economic hardship extensions.
   (b) The certificates, repair cost waivers, and economic hardship
extensions shall be in the form of an electronic entry filed with the
department, the Department of Motor Vehicles, and any other person
designated by the department.  The department shall ensure that the
motor vehicle owner or operator is provided with a written report,
signed by the licensed technician who performed the inspection, of
any test performed by a smog check station, including a pass or fail
indication, and written confirmation of the issuance of the
certificate.
   (c) (1) The department shall charge a fee to a smog check station,
including a test-only station, and a station providing referee
functions, for a motor vehicle inspected at that station that meets
the requirements of this chapter and is issued a certificate of
compliance, a certificate of noncompliance, repair cost waiver, or
economic hardship extension.
   (2) The fee charged pursuant to paragraph (1) shall be calculated
to recover the costs of the department and any other state agency
directly involved in the implementation, administration, or
enforcement of the motor vehicle inspection and maintenance program,
and shall not exceed the amount reasonably necessary to fund the
operation of the program, including all responsibilities,
requirements, and obligations imposed upon the department or any of
those state agencies by this chapter, that are not otherwise
recoverable by fees received pursuant to Section 44034.
   (3) Except for adjustments to reflect changes in the Consumer
Price Index, as published by the United States Bureau of Labor
Statistics, the fee for each certificate, waiver, or extension shall
not exceed seven dollars ($7).
   (4) Fees collected by the department pursuant to this subdivision
shall be deposited in the Vehicle Inspection and Repair Fund.  It is
the intent of the Legislature that a prudent surplus be maintained in
the Vehicle Inspection and Repair Fund.  If the surplus exceeds the
reasonable costs of administration of the programs specified in this
chapter and in Chapter 20.3 (commencing with Section 9880) of
Division 3 of the Business and Professions Code, the department
shall, by regulation, prescribe a lower fee for the certificates,
waivers, and extensions.
   (d) (1) Motor vehicles exempted under paragraph (4) of subdivision
(a) of Section 44011 that are four or less model-years old shall be
subject to an annual smog abatement fee of four dollars ($4).  If the
department increases the exemption in that paragraph (4) to include
motor vehicles that are five or six model-years old, the department
may, by regulation, subject those vehicles to the annual smog
abatement fee of four dollars ($4).  The department may also, by
regulation, subject motor vehicles that are exempted under paragraph
(5) of subdivision (a) of Section 44011 to the four dollar ($4)
annual smog abatement fee.  Payment of the annual smog abatement fee
shall be made to the Department of Motor Vehicles at the time of
registration of the motor vehicle.
   (2) Fees collected pursuant to this subdivision shall be deposited
on a daily basis into the Vehicle Inspection and Repair Fund.
   (e) The sale or transfer of the certificate, waiver, or extension
by a licensed smog check station or test-only station to any other
licensed smog check station or to any other person, and the purchase
or acquisition of the certificate, waiver, or extension, by any
person, other than from the department, the department's designee, or
pursuant to a vehicle's inspection or repair conducted pursuant to
this chapter, is prohibited.
   (f) Following implementation of the electronic entry certificate
under subdivision (b), the department may require the modification of
the analyzers and other equipment required at smog check stations to
prevent the entry of a certificate that has not been issued or
validated through prepayment of the fee authorized by subdivision
(c).
   (g) The fee charged by licensed smog check stations to consumers
for a certificate, waiver, or extension shall be the same amount that
is charged by the department.
  SEC. 16.  Section 44062.1 of the Health and Safety Code is amended
to read:
   44062.1.  (a) The department shall offer a repair assistance
program through entities authorized to perform referee functions.
   (b)  (1) The repair assistance program shall be available to the
following eligible individuals whose vehicles have failed a smog
check inspection:
   (A) An individual, based on a maximum income level of 185 percent
of the federal poverty level, as published quarterly in the Federal
Register by the Department of Health and Human Services.
   (B) An owner of a motor vehicle who is directed to a test-only
facility pursuant to Section 44010.5 or 44014.7.
   (2) The department shall offer repair cost assistance, funded by
the High Polluter Repair or Removal Account in the Vehicle Inspection
and Repair Fund created pursuant to subdivision (a) of Section 44091
and revenues generated by the smog impact fee pursuant to Section
6262 of the Revenue and Taxation Code, to individuals based on the
cost effectiveness and air quality benefit of the needed repair.
Repair assistance may include retesting costs.
   (3) An applicant for repair assistance shall file an application
on a form prescribed by the department and shall certify under
penalty of perjury that the applicant meets the applicable
eligibility standards.
   (4) Verification of low-income eligibility shall be based on at
least one form of documentation, as determined by the department,
including, but not limited to, (A) an income tax return, (B) an
employment warrant, or (C) a form of public assistance verification.

   (c) The repair assistance program shall be funded by the High
Polluter Repair or Removal Account.  A minimum of twenty million
dollars ($20,000,000) shall be made available annually for the
program through funding provided by revenues generated by the smog
impact fee pursuant to Section 6262 of the Revenue and Taxation Code.

   (d) All repairs subsidized by the state through the program shall
be performed at a repair station licensed and certified pursuant to
Sections 44014 and 44014.2.  Repair shall be based upon a preapproved
list of repairs for cost-effective emission reductions.
   (e) The qualified low-income motor vehicle owner receiving repair
assistance pursuant to this section shall contribute a copayment, as
determined by the department as specified in Section 44017.1, either
in cash, or in emissions-related partial repairs as verified by a
test-only station pursuant to paragraph (2) of subdivision (c) of
Section 44015, or a combination thereof.  For an owner of a motor
vehicle described in subparagraph (B) of paragraph (1) of subdivision
(b), the department shall impose a copayment at least equivalent to
the amount imposed on a low-income individual receiving assistance
under this section.  If the repair cost exceeds the applicable repair
cost limit, the department shall inform a motor vehicle owner of all
options for compliance at the time of testing and repair.
   (f) The department may increase its contribution toward the repair
of a motor vehicle under this program in excess of the amount
authorized for the repair of a high-polluter pursuant to paragraph
(1) of subdivision (b) of Section 44094, if the department determines
that the expenditure is cost-effective.
   (g) The department shall collect data from the program to provide
information on how to improve the program.  Data collection shall
include all of the following:
   (1) The number of motor vehicle owners that are eligible for
repair assistance.
   (2) The number of eligible motor vehicle owners that use repair
assistance funds.
   (3) The potential for fraud.
   (4) The average repair bills.
   (5) The types of repairs being done.
   (6) The amount of partial repairs done prior to receipt of repair
assistance.
   (7) The emissions benefits of providing repair assistance.
   (h) The department shall collect data and develop information and
shall report to the Legislature on or before April 1, 1999, on
eligibility criteria, program participation, the cost of vehicle
repairs, and the funding resources needed to implement the program.
   (i) For purposes of this section, "low-income motor vehicle owner"
means a person whose income does not exceed 185 percent of the
federal poverty level.
  SEC. 17.  Section 44091.2 is added to the Health and Safety Code,
to read:
   44091.2.  It is the intent of the Legislature that if the impact
fee imposed pursuant to Section 6262 of the Revenue and Taxation Code
is ruled unconstitutional by an appellate court or the California
Supreme Court, or if the state is in any manner prevented by either
of those courts from imposing or collecting the fee, the repair
assistance program implemented pursuant to Section 44062.1 and any
voluntary vehicle retirement program implemented by the department
not be supported by money appropriated from the General Fund.
  SEC. 18.  Section 44094 of the Health and Safety Code is amended to
read:
   44094.  (a) Participation in the high polluter repair or removal
program specified in this article and Article 10 (commencing with
Section 44100) shall be voluntary and shall be available to the
owners of high polluters that are registered in an area that is
subject to an inspection and maintenance program, have been
registered for at least 24 months in the district where the credits
are to be applied and, are presently operational, and meet other
criteria, as determined by the department.
   (b) The program shall provide for both of the following:
   (1) As to the repair of a high polluter, payment to the owner of
up to 80 percent of the total cost of repair, as determined by the
department, but the payment shall not exceed four hundred fifty
dollars ($450).
   (2) As to the removal of a high polluter, the program shall be
subject to Article 10 (commencing with Section 44100).
   (c) The department may specify the amount of money that may be
paid to an owner of a high-polluting motor vehicle who voluntarily
retires the vehicle.  The amount paid by the department shall be
based on the cost effectiveness and the air quality benefit of
retiring the vehicle, as determined by the department.
   (d) The department may authorize participation in the program
based on a reasonable estimate of the future revenues that will be
available to the program.
  SEC. 19.  Section 50880 of the Health and Safety Code is amended to
read:
   50880.  (a) The Legislature finds and declares all of the
following:
   (1) That there are more than 600,000 families in California who
face the enormous challenge of moving rapidly from welfare to work in
order to meet federal and state deadlines.
   (2) That a significant number of these families face substantial
obstacles in meeting these deadlines inasmuch as a vast percentage of
these families pay 50 to 80 percent of their welfare checks for
housing, live in counties with unemployment rates that are as high as
30 percent, cannot locate infant or child care because of no
availability or long waiting lists, and lack personal or public
transportation.
   (3) That approximately 1,500,000 children receiving Aid to
Families with Dependent Children (AFDC) will require child care when
their mothers begin private or public employment and that only four
out of every 100 slots in licensed child care centers are open to
infants.
   (4) That most of the 600,000 parents who will be required to work
lack training, and a high percentage lack a high school diploma, job
experience, and job retention skills in order to earn the income
necessary to sustain themselves and their children without welfare
assistance.  Studies demonstrate that a welfare mother in Los Angeles
with one toddler will need to find a job earning thirteen dollars
and seven cents ($13.07) per hour in order to provide housing, and
the basic necessities and health care.  A mother of two needs
seventeen dollars and ten cents ($17.10) per hour.
   (5) That in response to this complex problem facing so many
endangered families, that the "Families Moving to Work Program" shall
be quickly implemented within the California Department of Housing
and Community Development by revamping an older, successful program.

   (b) The Legislature intends that the "Families Moving to Work
Program" shall test innovative strategies of providing affordable
housing combined with onsite child care and a job training program.
The housing shall be located on a main transportation system.
   (c) The Legislature intends that the funds included in Item
2240-106-0001 of the Budget Act of 1999 be used as an integral part
of a county's welfare plan as a means of assisting families
qualifying for CalWORKs benefits and experiencing the greatest
difficulty moving from welfare to work.  The Legislature further
intends for this to be a transitional program that will provide
focused, enriched resources to CalWORKs households during the period
of moving from welfare to work, and that upon the completion of the
program, the household will be assisted in locating and moving to
affordable, permanent housing, and then a new CalWORKs household will
be provided assistance in the Families Moving to Work Program.  The
Legislature intends that the department may establish goals and
timelines for moving from welfare to work, and that broad criteria
for this transition shall be applied to households on an individual
basis.
   (d) The Legislature finds and declares that the legislative
findings and declarations set forth in Sections 1 to 5, inclusive, of
both Chapters 1042 and 1043 of the Statutes of 1979, remain valid
and are applicable to the program enacted by this chapter.  The
Legislature finds and declares that there is an urgent need to
establish a program to design new living environments, part of which
will include social and economic programs, so that working parents,
job-seeking parents, and homeless parents can build productive lives
for themselves and their children.
  SEC. 20.  Section 50881 of the Health and Safety Code is amended to
read:
   50881.  This chapter shall be known and may be cited as the
Families Moving to Work Program.  The Families Moving to Work Program
shall be operated as a component of the Rental Housing Construction
Program of the department.
  SEC. 21.  Section 50881.5 of the Health and Safety Code is amended
to read:
   50881.5.  The definitions in this section apply to all activities
conducted pursuant to this chapter.  Except as otherwise provided in
this chapter, or unless the context requires otherwise, the
definitions in Chapter 2 (commencing with Section 50050) of Part 1
also apply to this chapter.
   (a) "Account" means the Families Moving to Work Account
established by Section 50882.
   (b) "Assisted unit" means a unit in a community housing
development that is affordable to an eligible household as a result
of a payment made by the department pursuant to this chapter.  The
department shall adopt regulations that establish a method for
computing rents for eligible households in accordance with Section
50771.1.
   (c) "Community housing development" means a development of 20 or
more rental or cooperative units on one or more sites, that includes
the social and economic features described in this chapter.
   (d) "Congregate housing" or "congregate housing development,"
means a new or rehabilitated large multibedroom structure in which
more than two families share common living areas and child care,
cleaning, cooking, and other household responsibilities.
   (e) "Development" means both new construction and rehabilitation.

   (f) "Development or rehabilitation costs" has the same meaning as
"development costs" as defined by subdivision (c) of Section 50735,
paragraph (5) of subdivision (b) of Section 50668.5, and paragraph
(3) of subdivision (b) of Section 50771.1, respectively.
   (g) "Eligible household" means households as defined in Section
50079.5 or 50105, respectively.
   (h) "Sponsor" means any nonprofit corporation, cooperative, or
local public agency, or any combination thereof, including limited
partnerships in which the managing general partner is an eligible
nonprofit corporation.
  SEC. 22.  Section 50882 of the Health and Safety Code is amended to
read:
   50882.  (a) The Families Moving to Work Account is hereby
established in the Rental Housing Construction Fund.  The account
shall be organized into subaccounts as provided in this chapter.  All
of the following moneys shall be paid into the account:
   (1) Any moneys appropriated and made available by the Legislature
for the purposes of the account.
   (2) Any moneys that the department receives in repayment or return
of loans made from the account, including any interest on those
loans.
   (3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
   (b) Notwithstanding Section 13340 of the Government Code, all
money in the account is hereby continuously appropriated to the
department and shall be utilized for the purposes of Article 1
(commencing with Section 50880) to Article 4 (commencing with Section
50893), inclusive, including administrative expenses of the
department for the implementation and operation of the programs
created by this chapter.  All interest or other increment resulting
from investment or deposit of moneys in the account shall be
deposited in the account, notwithstanding Section 16305.7 of the
Government Code.  Moneys in the account are not subject to transfer
to any other fund, except as set forth in this chapter, pursuant to
any provision of Part 2 (commencing with Section 16300) of Division 4
of Title 2 of the Government Code, except the Surplus Money
Investment Fund.
   (c) At the time funding availability is announced by the
department, the department may apportion funds available for loans
between community housing developments and congregate housing
developments.  The plan for apportioning funds may include a priority
for funding loans for new construction, acquisition and
rehabilitation, or rehabilitation.
   (d) Notwithstanding any other provision of law, on or after July
1, 1996, the unencumbered account balance and reserves shall be
transferred out of the Family Housing Demonstration Account, but
shall be retained within the Rental Housing Construction Fund.
  SEC. 23.  Section 50884 of the Health and Safety Code is repealed.


        SEC. 24.  Section 50887 of the Health and Safety Code is
amended to read:
   50887.  The department may make awards from the account for the
purposes of assisting the development of community housing
developments.  To the extent feasible, the department shall ensure
that the funds are equally distributed between the northern and
southern portions of the state.  To the extent feasible, not less
than 20 percent of the funds awarded pursuant to this chapter shall
be allocated to rural areas.
  SEC. 25.  Section 50888.3 of the Health and Safety Code is amended
to read:
   50888.3.  The housing component of a community housing development
shall include the following features and criteria:
   (a) At least 30 percent of the units shall be assisted units, and
those assisted units shall be available on a priority basis to, or
occupied by, eligible households at affordable rent.
   (b) Not less than two-thirds of all assisted units shall, to the
extent feasible, be available on a priority basis to, or occupied by,
households as defined in Section 50105.
   (c) The assisted units shall be available on a priority basis to,
or occupied by, families with one or more children, depending on the
size of the dwelling unit.
   (d) The department shall encourage the provision of three bedroom
or larger units in each community housing development.  The assisted
units shall consist of substantially the same range of unit sizes as
are available in nonassisted units, as determined by the department.

  SEC. 26.  Section 50888.5 of the Health and Safety Code is amended
to read:
   50888.5.  The jobs and economic development component of a
community housing development shall include all of the following
features and criteria:
   (a) The sponsor shall consider existing employment at nearby
facilities, the potential of employment at nearby facilities through
publicly assisted or other job-training or entry-level employment
programs, and employment in the management and operation of the
community housing development and its child care center.
   (b) The sponsor shall develop a program of job placement and
training for residents, which shall be implemented upon initial
occupancy.  The program shall consider employment and job training
opportunities within the community housing development.
  SEC. 27.  Section 50888.7 of the Health and Safety Code is amended
to read:
   50888.7.  (a) The supportive services of the community housing
development shall include all of the following features and criteria:

   (1) A child care center and play area adequate in size for the
anticipated children of the residents which may also serve children
of nonresidents.
   (2) A community room, which may also be the child care center.
   (3) Adequate laundry facilities.
   (b) The supportive services of the community housing development
may include other features as appropriate.
  SEC. 28.  Section 50889.5 of the Health and Safety Code is amended
to read:
   50889.5.  Applications for fund commitments shall be accepted by
the department at any time.  Fund commitments shall be based on a
ranking of applications.
   (a) In making this ranking, the department shall give priority to
projects that do all of the following:
   (1) Serve the greater number of eligible households with the
lowest income, as defined in Section 50105, for the greatest period
of time above the minimum number of years.
   (2) Are located in areas where the housing need is great, as
determined by the department, taking into consideration, among other
factors, low vacancy rates, high market rents, and long waiting lists
for subsidized housing.
   (3) Complement the implementation of an existing housing program.

   (4) Maximize private, local, and other funding sources.
   (5) Are economically feasible.
   (6) Are reasonable in cost.
   (b) In making funding awards, the department also shall do both of
the following:
   (1) Evaluate the capability of the sponsor to own, construct or
rehabilitate, and manage the housing developments, including those
with child care and other support services.
   (2) Require evidence from the local welfare department, to be
submitted as part of the sponsor's application, that the proposed
development is consistent with the Welfare Reform Plan required
pursuant to Section 10531 of the Welfare and Institutions Code, as
adopted by the county board of supervisors.
  SEC. 29.  Section 50890 of the Health and Safety Code is amended to
read:
   50890.  The Legislature finds and declares all of the following:
   (a) That in addition to the need for housing described in this
chapter as community housing developments, there is an additional
critical need for smaller scale congregate housing suitable to
single-parent households in which families share large, multibedroom
houses with common living areas and who share child care, cleaning,
cooking, and other household responsibilities.
   (b) That congregate housing can be constructed or converted at
little more cost than conventional housing, and at less cost than
conventional apartment houses.  The purposes of this housing can be
achieved through a combination of innovative and traditional designs,
including, but not limited to, the construction of "flexibility"
houses where only the exterior walls and those around the kitchen and
bathroom are permanent, or the use of large rooms with interior
sliding doors or screens to provide for personal or social spaces.
   (c) That this type of housing can reduce reliance on public
assistance; increase self-reliance and joint problem solving; assist
single parents to obtain and keep employment; provide fulfilling
activity for elderly or handicapped persons; provide for more
economical use of housing stock; and ensure the use of scarce family
resources in a manner which maximizes the health, safety, and
development of children and younger single parents. Notwithstanding
all of these benefits, there are no public programs that assist in
the provision or financing of this housing, and private financing or
provision of this housing is almost nonexistent.
  SEC. 30.  Section 50893.5 of the Health and Safety Code is amended
to read:
   50893.5.  (a) The department shall monitor the construction and
operation of the community housing developments and congregate
housing developments developed pursuant to this chapter in order to
ensure compliance with loan conditions, contract obligations, and
this chapter and any regulations adopted pursuant to this chapter.
The department may charge a fee to the sponsor to offset the cost of
monitoring.
   (b) The department may enter into a contract with a local public
agency to monitor the operation of community housing developments and
congregate housing developments.
  SEC. 31.  Section 50893.7 of the Health and Safety Code is amended
to read:
   50893.7.  The regulatory agreement shall contain at least the
following provisions, and any others determined necessary by the
department, each of which is a binding requirement:
   (a) Substantially the same provisions as are required by Sections
50766 and 50767, except that they shall be applicable to sponsors and
developments assisted pursuant to this chapter and the requirements
of this chapter.
   (b) A description of, and requirements governing, all social and
economic components of the community housing development and the
sponsor's affirmative responsibilities with respect to the
components.
   (c) A provision making the covenants and conditions of the
agreement binding upon successors in interest of the sponsor.
   (d) For sponsors other than a governmental agency, a provision
limiting the distribution of the sponsor's earnings from the assisted
portion of the community housing development, or congregate housing
development, in an annual amount no greater than 8 percent of the
sponsor's actual investment, excluding unaccrued liabilities of the
sponsor, in the assisted portion of the community housing
development.  The "assisted portion" of a community housing
development includes the assisted units, the portion of the common
area that is equal to the ratio of floorspace of the assisted units
to total units, and if any funds are awarded under this chapter to
develop all or any portion of a child care center for the community
housing development, the entire child care center.  A sponsor shall
not be subject to a limitation on distributions received from that
portion of the community housing development that is not the assisted
portion.  That portion of the development which is not assisted
shall include the units which are not assisted units, the portion of
the common area that is equal in proportion to the ratio of
floorspace of the nonassisted units to total units, the child care
center, if no funds have been awarded under this chapter for
development of the center, and any commercial space which, for the
purposes of this chapter, does not include any child care center.
   (e) Provisions for requiring termination of tenancy upon
completion or termination of the tenant's job training program no
later than two years following termination of the cash grant received
by the tenant under CalWORKs, consistent with the requirements of
the local welfare reform plan and CalWORKs.
   (f) Provisions for grievance hearings and other resident
protections which ensure reasonable security of continued occupancy.

   (g) Provisions to ensure that if an eligible household's income
exceeds the standard pursuant to which it was accepted for tenancy,
that fact alone shall neither constitute cause for the eviction nor
be a violation of the sponsor's loan agreement.
   (h) Provisions for setting initial rents and rent increases
consistent with paragraph (1) of subdivision (c) of Section 50771.1.
Prior to the time any rent increase is effective, the sponsor shall
notify every affected tenant, in writing, of the availability of
informal meetings with the sponsor to review the proposed rent
increase.  Each tenant, upon request, shall be provided the
information submitted to the department pursuant to this subdivision.

   (i) A requirement that the sponsor submit to the department for
review and approval, annual operating budgets and periodic reports,
which shall at a minimum include information on the fiscal condition
of the rental housing development, the maintenance of the
development, and the number of units occupied by eligible households.

  SEC. 32.  Section 50893.9 of the Health and Safety Code is amended
to read:
   50893.9.  The department, in its administration of the program
established pursuant to this chapter, shall do all of the following:

   (a) Ensure that services, including child care, have costs that
are based on household income and ability to pay.
   (b) Ensure that there is an adequate management plan that includes
an affirmative marketing plan.
   (c) Ensure that all of the following apply to cooperatives and
limited equity cooperatives:
   (1) The downpayment for an assisted unit shall not exceed 2.5
percent or the prorated development cost of the unit.
   (2) Any payment prior to occupancy shall not exceed 10 percent of
the income of the household for the prior calendar year.
   (3) There is a limitation on the rate of appreciation on any
assisted unit.
  SEC. 33.  Section 50895 of the Health and Safety Code is repealed.

  SEC. 34.  Section 50895 is added to the Health and Safety Code, to
read:
   50895.  No rule, policy, or standard of general application
employed by the department in implementing this chapter shall be
subject to the requirements of Chapter 3.5 (commencing with Section
11340) of Part 1 of Title 2 of the Government Code.
  SEC. 35.  Section 51451 of the Health and Safety Code is amended to
read:
   51451.  The Homebuyer Down Payment Assistance Program and the
Rental Assistance Program are hereby established to provide
assistance in the amount of the applicable school facility fee on
affordable housing developments.
   (a) A Homebuyer Down Payment Assistance Program shall provide the
following assistance:
   (1) Downpayment assistance to the purchaser of newly constructed
residential structures in a development project in economically
distressed areas in the aggregate amount of school facility fees paid
pursuant to one or both of Sections 65995.5 and 65995.7 of the
Government Code, less the amount that would be required pursuant to
subdivision (b) of Section 65995 of the Government Code
notwithstanding Sections 65995.5 and 65995.7 of the Government Code,
if all of the following conditions are met:
   (A) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
   (B) Five hundred or more residential structures have been
constructed in the county during 1997.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (E) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years.
   (2) Downpayment assistance to the purchaser of any newly
constructed residential structure in the development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of Sections 65995, 65995.5, and 65995.7 of the
Government Code, less the amount that would be required pursuant to
subdivision (b) of Section 65995 of the Government Code
notwithstanding Sections 65995.5 and 65995.7 of the Government Code,
if all of the following conditions are met:
   (A) The development project is located in the state.
   (B) The sales price of the eligible residential structure in the
development project does not exceed one hundred ten thousand dollars
($110,000).
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (3) Downpayment to the purchaser of any newly constructed
residential structure in a development project in the aggregate
amount of school facility fees paid pursuant to one, all, or any
combination of subdivision (b) of Section 65995 and Sections 65995.5
and 65995.7 of the Government Code for the eligible residential
structure if all of the following conditions are met:
   (A) The assistance is provided to a qualified first-time homebuyer
pursuant to Section 50068.5.
   (B) The qualified first-time homebuyer meets the very low or
low-income requirements set forth in Sections 50105 and 50079.5,
respectively.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (b) A Rental Assistance Program shall provide assistance to the
housing sponsor of a housing development in the aggregate amount of
the school facility fees paid pursuant to one, all, or any
combination of subdivision (b) of Section 65995 and Sections 65995.5
and Section 65995.7 of the Government Code that meets all of the
following conditions:
   (1) The units are deed restricted to very low income households
and are continuously available to or occupied by very low income
households at rents that do not exceed those prescribed by Section
50053, except that for the purposes of this subdivision, very low
income shall be defined as 30 percent times 30 percent of the median
income adjusted for family size appropriate for the unit.
   (2) The number of dedicated residential units must equal or exceed
the number of units supported by the reimbursed school impact fees
determined by the average per unit development cost.
   (3) The dedicated residential units are regulated by an
appropriate local or state agency for a minimum of 30 years.
   (4) A building permit for an eligible residential unit in the
development project is issued by the local agency on or after January
1, 1999.
  SEC. 36.  Section 51452 of the Health and Safety Code is amended to
read:
   51452.  (a) The School Facilities Fee Assistance Fund is hereby
established in the State Treasury and, notwithstanding Section 13340
of the Government Code, all money in the fund is continuously
appropriated to the Department of General Services for the purposes
of this chapter.  All repayments of disbursed funds pursuant to this
chapter or any interest earned from the investment in the Surplus
Money Investment Fund or any other moneys accruing to the fund from
whatever source shall be returned to the fund and is available for
allocation by the California Housing Finance Agency to programs
established pursuant to this chapter.
   (b) The following amounts are hereby appropriated from the General
Fund to the School Facilities Fee Assistance Fund for administrative
costs and to make payments to purchasers of newly constructed
residential structures and housing sponsors of housing developments
pursuant to this chapter from that fund by fiscal year as follows:
   (1) Twenty million dollars ($20,000,000) in the 1998-99 fiscal
year.
   (2) Forty million dollars ($40,000,000) in the 1999-2000 fiscal
year.
   (3) Forty million dollars ($40,000,000) in the 2000-01 fiscal
year.
   (4) Forty million dollars ($40,000,000) in the 2001-02 fiscal
year.
   (5) Twenty million dollars ($20,000,000) in the 2002-03 fiscal
year, through December 31, 2002.
   (c) The funds shall be distributed by fiscal year to each program
in proportion to the total amounts available for each program as
follows:
   (1) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (1) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months
shall be available for programs set forth in paragraphs (2) and (3)
of subdivision (a) of Section 51451.
   (2) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (2) of subdivision (a) of
Section 51451.
   (3) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in paragraph (3) of subdivision (a) of Section
51451.
   (4) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in subdivision (b) of Section 51451.
  SEC. 37.  Section 51453 of the Health and Safety Code is repealed.

  SEC. 38.  Section 51455 of the Health and Safety Code is amended to
read:
   51455.  Sections 51450, 51451, 51452, 51454, and this section
shall remain in effect until January 1, 2003, and as of that date are
repealed.
  SEC. 39.  Section 311.1 is added to the Public Utilities Code, to
read:
   311.1.  Notwithstanding any other provision of law, the commission
shall not consider or require, in determining qualified bidders for,
or in awarding contracts, that any facilities be located within a
particular area of the state, or within geographical proximity of any
particular area of the state.
  SEC. 40.  Section 19556 of the Revenue and Taxation Code is
repealed.
  SEC. 41.  Section 3 of Chapter 328 of the Statutes of 1998 is
amended to read:
  Sec. 3.  (a) The intent of the Performance and Results Act of 1993
(Chapter 8 (commencing with Section 11800) of Part 1 of Division 3 of
Title 2 of the Government Code) and the State Government Strategic
Planning and Performance Review Act (Chapter 8.1 (commencing with
Section 11810) of Part 1 of Division 3 of Title 2 of the Government
Code) is to improve the delivery of governmental services through the
use of strategic planning and performance measurement.  Therefore,
the Department of Consumer Affairs shall commit itself to achieve
improved levels of performance, as specified, by focusing its efforts
on enhancing the value of the services it delivers.
   (b) (1) Notwithstanding any other provision of law, the Director
of Consumer Affairs or his or her designee, in lieu of the Director
of Finance, is authorized to carry out the provisions of Section
31.00 of the Budget Act as it pertains to the positions funded by the
Budget Act.
   (2) Notwithstanding Section 31.00 of the Budget Act, the Director
of Consumer Affairs is not required to notify the Chairperson of the
Joint Legislative Budget Committee regarding any position
authorization, blanket transfer, or reclassification of positions
funded by the Budget Act.
   (c) Notwithstanding any other provision of law, the Director of
Consumer Affairs or his or her designee, in lieu of the Director of
Finance, is authorized to carry out the provisions of Section 26.00
of the Budget Act as it pertains to category transfers related to the
Budget Act.
   (d) Notwithstanding any other provision of law, the Director of
Consumer Affairs or his or her designee, in lieu of the Director of
Finance, is authorized to approve Budget Revision, Standard Form 26,
for activities funded by the Budget Act.
   (e) The Department of Consumer Affairs shall be exempt from Rule
444 of the State Personnel Board, which requires advertising vacant
positions when filled by transfer within or between department
offices or other agencies, or by training and development assignment.
  This exemption does not provide an exemption from any of the
requirements imposed by Section 19232, 19404, or 19790 of the
Government Code.
   (f) Notwithstanding Sections 2050 to 2057, inclusive, Sections
10115 to 10115.13, inclusive, Sections 10290 to 10382, inclusive, and
Sections 12100 to 12121, inclusive, of the Public Contract Code, and
Section 14669 and Sections 14740 to 14880, inclusive, of the
Government Code, the Director of Consumer Affairs or his or her
designee shall have full authority and discretion to execute all
contracts, procure all goods and services, negotiate lease agreements
for office, warehouse, and other appropriate facilities, and
determine appropriate methods to store and retrieve departmental
records related to the bureaus, programs, and divisions under the
Director of Consumer Affairs' appointing authority.
   Except as provided in this subdivision, the Director of Consumer
Affairs shall use the authority granted in this subdivision to
implement alternative approaches, procedures, and methods, in lieu of
the guidelines and procedures contained in the State Administrative
Manual and in other state-issued guidelines to carry out the
provisions of the Public Contract Code and the Government Code cited
in this section, for execution of contracts, procurement of all goods
and services, negotiate lease agreements for office, warehouse, and
other appropriate facilities, and determine appropriate methods to
store and retrieve departmental records related to the bureaus,
programs, and divisions under the Director of Consumer Affairs'
appointing authority.
   This authority granted by this subdivision shall not affect any of
the following:
   (1) The Department of Consumer Affairs' continued use of the state'
s private line voice network (CALNET).
   (2) The Department of General Services' continued responsibility
and authority for the consolidation of the Department of Consumer
Affairs' offices in the Sacramento area.
   (3) The requirement that the Department of Consumer Affairs obtain
the written approval of the Secretary of the State and Consumer
Services Agency for any leasing of offices that may affect the Los
Angeles basin and San Francisco Area Consolidation Plans.
   (g) Notwithstanding any other provision of law, the Director of
Consumer Affairs may prepay vendors when it is a best value to the
Department of Consumer Affairs.  In the event the Department of
Consumer Affairs incurs any losses due to the prepayment of vendors,
the Department of Consumer Affairs shall report such losses in the
semiannual report required in subdivision (q).
   (h) Related to the implementation of information technology
projects for the bureaus, programs, and divisions under the Director
of Consumer Affairs' appointing authority:
   (1) Notwithstanding Sections 4819.35 to 4819.37, inclusive, of the
State Administrative Manual, the Director of Consumer Affairs or his
or her designee, is authorized to internally approve all Feasibility
Study Reports related to information technology projects whose
aggregate total development costs do not exceed one million dollars
($1,000,000), provided the project activity is consistent with the
department's Strategic Information Systems Plan and uses existing
resources.
   (2) Notwithstanding Sections 12100 to 12121, inclusive, of the
Public Contract Code, the Director of Consumer Affairs or his or her
designee, shall have full authority and discretion for the
procurement of electronic data processing and telecommunications
goods and services that do not exceed one million dollars
($1,000,000) per procurement.
   (i) Notwithstanding Sections 14850 to 14855, inclusive, of the
Government Code, the director, or his or her designee, shall have
full authority and discretion to execute contracts and procure
printing services, or both, that are timely and cost-beneficial to
the bureaus, programs, and divisions under the director's appointing
authority.
   (j) Notwithstanding Section 2807 of the Penal Code, the Director
of Consumer Affairs, or his or her designee, shall have full
authority to procure goods and services from the private sector, even
though these goods and services may be available through the Prison
Industries Authority, when in his or her discretion it is more
cost-beneficial to the bureaus, programs, and divisions under the
Director of Consumer Affairs' appointing authority.
   (k) Notwithstanding subdivision (a) of Section 948 and Section 965
of the Government Code, the Director of Consumer Affairs or his or
her designee, in lieu of the Director of Finance, is authorized to
certify funds for the payment of all legal settlements, State Board
of Control claims, judgments,
   and tort claims, for which the Department of Consumer Affairs has
sufficient expenditure authority and funds without the need for an
augmentation.  This provision shall only apply to programs under the
Director of Consumer Affairs' appointing authority.
   (l) Notwithstanding Section 11032 of the Government Code, the
Director of Consumer Affairs or his or her designee, may authorize
officers and employees of the programs under the Director of Consumer
Affairs' appointing authority, to travel outside the state or
country without approval from any other agency, and the funds
appropriated by the Budget Act may be used for that purpose.
   (m) Notwithstanding any other provision of law, the Department of
Consumer Affairs shall be exempt from Section 12439 of the Government
Code regarding the abolition of vacant state positions.
   (n) All reports to the Legislature required in the sections cited
in this section shall be made by the Director of Consumer Affairs in
the same form and manner as currently reported by the otherwise
appropriate agency.
   (o) The Legislature finds and declares the following with regard
to the Department of Consumer Affairs, and the bureaus and programs
within the Department of Consumer Affairs:
   (1) The traditional budgeting system does not appropriately
measure results or outcomes.
   (2) The Department of Consumer Affairs has drafted and submitted
to the Legislature the following essential elements of performance
budgeting and strategic planning:
   (A) A strategic business and information systems plan.
   (B) Meaningful outcome measures that are the primary focus of
management accountability.
   (C) Performance targets for each of the outcome measures.
   (p) In connection with the support funding appropriated by the
Budget Act and by any other act, for the 1999-2000 fiscal year, the
Department of Consumer Affairs, pursuant to this subdivision and
subdivision (q), shall continue the performance funding project that
holds the department accountable for results rather than process.
The Department of Consumer Affairs' obligations under this project in
the 1999-2000 fiscal year shall include the following:
   The Department of Consumer Affairs shall continue to conduct
regulatory reviews of the programs under the authority of the
Director of Consumer Affairs, to determine whether the regulatory
activities of the programs are appropriate and necessary, and whether
the programs should be eliminated, modified, or continued.  This
assessment shall be based on the Department of Consumer Affairs'
evaluation of the public benefit of the regulatory activity, the
program's success in attaining those benefits, and the data gathered
as part of the market condition assessment.
   (q) (1) In addition to the commitments described in subdivision
(p), the Department of Consumer Affairs shall do both of the
following:
   (A) Submit to the Legislature any revisions to its strategic
business and information systems plans and performance measures in
accordance with the schedule established by the administration for
submission of strategic plans.
   (B) Report semiannually:  The Department of Consumer Affairs shall
provide an annual report for the previous fiscal year no later than
December 31, 1999, and a progress report for the first six months of
the current fiscal year no later than April 1, 2000, regarding the
status of the implementation of its strategic business and
information systems plans, the attainment of its performance targets,
and the implementation and impact of the administrative
flexibilities provided for the previous fiscal year.  The report
shall be submitted to the Joint Legislative Budget Committee, the
appropriate fiscal committees, and the Department of Finance.
   (2) The Department of Consumer Affairs shall not modify its
strategic business and information systems plans or performance
measures sooner than 60 days after notification, in writing, to the
Joint Legislative Budget Committee, the appropriate fiscal
committees, and the Department of Finance.
   (r) This section shall remain in effect only until the effective
date of the Budget Act of 2000 or June 30, 2000, whichever occurs
later.
  SEC. 42.  The Department of Consumer Affairs shall end its
participation in the performance-based budgeting pilot project
authorized by Chapter 641 of the Statutes of 1993.  The Department of
Consumer Affairs shall, during the course of the 1999-2000 fiscal
year, transition its budgeting and accounting systems to conform with
the systems prescribed by the Department of Finance.  Nothing in
this act shall be construed to prevent the Department of Consumer
Affairs from using performance measurement as a management tool in
this and subsequent fiscal years.
  SEC. 43.  (a) The intent of the Performance and Results Act of 1993
(Chapter 8 (commencing with Section 11800) of Part 1 of Division 3
of Title 2 of the Government Code) is to improve the delivery of
governmental services through the use of strategic planning and
performance measurement.  Therefore, the Department of General
Services (DGS) shall commit itself to achieve improved levels of
performance, as specified in this section, by focusing its efforts on
enhancing the value of the services it delivers.
   (b) (1) Under Goal Two of the DGS strategic plan, DGS committed
itself to providing the following two categories of services by July
1, 1998:  (A) services that the Legislature or Governor requires
state agencies to purchase from DGS, and (B) services that state
agencies are not required to purchase from DGS, but that DGS can
provide on a cost-competitive basis.
   (2) Notwithstanding Section 7550.5 of the Government Code, DGS
shall prepare and submit a report to the Legislature and the
Department of Finance on its performance twice per year as follows:
on September 1, 1999, for the period January 1, 1999, to June 30,
1999, inclusive; for the 1999-2000 fiscal year, DGS shall report on
March 1, 2000, for the period July 1, 1999, to December 31, 1999,
inclusive, and on September 1, 2000, for the period January 1, 2000,
to June 30, 2000, inclusive.  Each report shall provide data on DGS
performance as measured against its yearend objectives established
annually by the department.  The performance evaluation shall
measure, as appropriate, customer satisfaction, cycle times, cost
price comparisons, efficiency and effectiveness, and financial
performance.
   (c) Notwithstanding any other provision of law, the Director of
General Services or his or her designee, in lieu of the Director of
Finance, may approve DGS Form 22 and DGS Form 220, including the
extension of time to expend transferred funds, the transfer of funds
from one work order to another, and the Return of Funds Document.
   (d) Notwithstanding Chapter 1 (commencing with Section 16301.6) of
Part 2 of Division 4 of Title 2 of the Government Code, the Director
of General Services or his or her designee may approve "relief from
accountability" for debts owed to DGS up to five thousand dollars
($5,000) when DGS determines it cannot collect the debts or when the
cost of collection exceeds the amount of the debt.
   (e) Notwithstanding Section 2807 of the Penal Code, the Director
of General Services or his or her designee may procure goods from the
private sector even though the goods may be available through the
Prison Industry Authority, when in his or her discretion, it is
cost-beneficial to do so and if the director or his or her designee
continues to include the authority in soliciting quotations for
goods.
   (f) Notwithstanding subdivision (a) of Section 948 and Section 965
of the Government Code, the Director of General Services or his or
her designee, in lieu of the Director of Finance, may certify funds
for payment of all legal settlements and tort claims for which DGS
already has sufficient expenditure authority and funds without the
need for augmentation.
   (g) Notwithstanding Section 14876 of the Government Code, the
Director of Personnel Administration or his or her designee shall
establish salary and wages for employees of the Office of State
Printing pursuant to Sections 3516 to 3517.6, inclusive, of the
Government Code.
   (h) Notwithstanding Chapter 7 (commencing with Section 14850) of
Part 5.5 of Division 3 of Title 2 of, or Section 14901 of, the
Government Code, no agency is required to use the Office of State
Printing for its printing needs and the Office of State Printing may
offer printing services to both state and other public agencies,
including cities, counties, special districts, community college
districts, the California State University, the University of
California, and agencies of the United States government.
   (i) Notwithstanding Section 14851 of the Government Code, the
Office of State Printing may accept paid advertisements in state
publications or in publications promoting an Office of State Printing
supported project or program from vendors who are participating as a
partner in that project or program.  The Office of State Printing
may not accept or publish paid political advertising.  Unless
otherwise authorized, only the Office of State Printing may print
state publications that include paid advertisements.
   (j) Notwithstanding Section 965.2 of the Government Code, the
Director of General Services or his or her designee, in lieu of the
Director of Finance, may certify funds for payment of all legal court
settlements for projects funded from the Architecture Revolving
Fund, if a sufficient fund balance exists in the work order to pay
the claim and the payment does not require a budget augmentation to
complete the project.
   (k) Notwithstanding Section 14957 of the Government Code, the
Director of General Services or his or her designee, in lieu of the
Director of Finance, may approve the deposit of checks directly into
the Architecture Revolving Fund.  DGS shall notify the Department of
Finance within 30 days of the date DGS makes such a deposit.
   (l) Notwithstanding Section 12439 of the Government Code, DGS is
exempt from the provisions that abolish, effective July 1, any
positions that were vacant continuously during the period between
October 1 and June 30 of the preceding year.
   (m) Notwithstanding Section 11032 of the Government Code, the
Director of General Services or his or her designee may authorize its
employees to travel outside the state or country without approval by
the Department of Finance.
   (n) Notwithstanding any other provision of law, the Director of
General Services or his or her designee may prepay vendors when it is
cost-beneficial to DGS.  In the event DGS incurs any losses due to
the prepayment of vendors, DGS shall report those losses to the Joint
Legislative Budget Committee and to the appropriate fiscal
committees of the Legislature.
   (o) (1) Notwithstanding Sections 8647, 11005, and 11005.1 of the
Government Code, DGS may accept gifts and donations of real property
without approval by the Director of Finance.  DGS shall bear any
costs associated with the acceptance of those gifts and donations and
the funds used for this purpose.  DGS shall not certify the fair
market value of any gift or donation of real property without
performing its own appraisal.  Upon receipt of any gift or donation
of real property, DGS shall certify in writing to the Department of
Finance all of the following:
   (A) The gift or donated property will have minimal impact on the
operation and maintenance costs and DGS will absorb the costs within
its existing budget.
   (B) The gift or donated property has no evidence or history of
environmental hazards or contamination.
   (C) There are no lawsuits pending concerning the property, and
clear title is a condition of the gift or donation.
   (D) The gift or donation has an estimated fair market value of
less than five hundred thousand dollars ($500,000).
   (E) There are no provisions that will restrict DGS from divesting
title to the gift or donated property.
   (F) There are no structures on the property, or any structures on
the property will be razed.
   (2) If one or more of the criteria listed in this subdivision are
not met, DGS shall obtain approval from the Department of Finance to
accept the gift or donation of real property.
   (3) Any gifts and donations that will require future budget change
proposals shall be submitted to the Department of Finance for
approval.
   (p) This section shall remain in effect only until the effective
date of the Budget Act of 2000 or July 1, 2000, whichever occurs
later.
  SEC. 44.  (a) The State Energy Resources Conservation and
Development Commission shall conduct a public process to prepare a
transition plan report on the transfer of energy efficiency programs
from the Public Utilities Commission to the State Energy Resources
Conservation and Development Commission, and, notwithstanding Section
7550.5 of the Government Code, submit that report to the Legislature
by January 1, 2000.  For that purpose, the transition is defined as
the period through December 31, 2001, during which utilities will
continue as primary program administrators under the oversight of the
Public Utilities Commission.  The transition plan shall include
consideration of all of the following:
   (1) Issues associated with oversight responsibility, including
those associated with the transfer of responsibility from the Public
Utilities Commission to the State Energy Resources Conservation and
Development Commission.
   (2) Implementation and sequencing issues associated with the
transfer of responsibility for administration of energy efficiency
activities from utilities to a new administrative structure.
   (3) Coordination and synergy between this program and other public
goods charge programs such as the Public Interest Energy Research
(PIER) program.
   (4) Program requirements necessary to ensure that current programs
apply market transformation principles and result in sustainable,
cost-beneficial improvements in California's energy markets.
   (5) Resources necessary to implement the transition plan.
   (b) The State Energy Resources Conservation and Development
Commission shall conduct a public process to prepare an operational
plan report and, notwithstanding Section 7550.5 of the Government
Code, submit that report to the Legislature by January 1, 2000.  The
operational plan report shall recommend a post-transition
administrative structure that is designed to achieve efficient and
effective program administration.  The report shall consider all of
the following:
   (1) The application of market transformation principles to achieve
cost-effective energy efficiency and conservation through
sustainable, cost-beneficial improvements in California's energy
markets.
   (2) Assessment of energy markets to identify feasible ways of
improving market structures, including, but not necessarily limited
to, an assessment of California's untapped opportunities to secure
cost-effective savings.
   (3) Programs that result in sustainable improvements in the
information environment, market rules, and other aspects of market
structures that result in either of the following:
   (A) Enabling private businesses to innovate and provide energy
efficient products and services.
   (B) Supporting the ability of customers to make more intelligent
energy choices.
   (4) The appropriate roles of other private and public entities
providing energy efficiency services, including, but not limited to,
designating a public benefit, nonprofit corporation as the program
administrator.
   (5) Whether eligibility for program funds should be expanded to
support the ability of electricity consumers to shift electricity
usage in response to pricing differences.
   (6) The appropriate funding levels for energy efficiency and
conservation in the post-2001 period and appropriate program
oversight in the post-2001 period.
   (7) Minimizing the role of state agencies in providing
administrative and implementation services.
   (8) Programs in existing residential and nonresidential program
areas that reduce consumer energy bills while stimulating the growth
of a competitive industry providing cost-effective products and
services, such as the Standard Performance Contract program.
  SEC. 45.  Sections 19 to 34, inclusive of this act shall become
operative only if an appropriation is made for its purposes in the
Budget Act of 1999, or in another statute enacted during the first
calendar year of the 1999-2000 Regular Session, and shall be funded
exclusively with funds appropriated thereby.
  SEC. 46.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
  SEC. 47.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to make the statutory changes to implement the Budget Act
of 1999 at the earliest possible time, it is necessary that this act
take effect immediately.
